Review panel places conditions on McArthur River exploration

A joint public Canada-Saskatchewan review panel has recommended that the McArthur River underground exploration program proposed by Cameco (TSE) on behalf of the McArthur River joint venture proceed under certain conditions.

The McArthur River deposit in northern Saskatchewan contains estimated reserves of 260 million lb. averaging 5% U3O8. The property is owned by Cameco (43.99%), Uranerz Exploration and Mining (29.78%), AGIP Resources (10%), Interuranium Canada (9.06%) and Cogema Canada (7.17%). During the proposed exploration program, underground drilling will be carried out to determine the size, location and grade of the McArthur River uranium orebody. The ore will not be mined during the program.

Conditions recommended by the joint Canada-Saskatchewan review panel include: — The drafting of a surface lease agreement specific to the program before underground exploration begins. The agreement would involve First Nations peoples, communities affected by the program, Cameco and the government of Saskatchewan. The lease would address such items as employment and training, revenue sharing, worker health and safety and environmental protection. — The completion of a site-specific, biophysical baseline data-gathering program before underground excavation begins.

— Acknowledgement that compliance with these recommendations does not prejudice the panel’s right to review any subsequent proposals for test or full-scale production mining.